tv [untitled] July 13, 2011 10:00am-10:30am PDT
supervisor chu: welcome to the regular meeting of the budget and finance committee. supervisors wiener and chiu will be joining us shortly. in the meantime, if we could excuse the of your above are engaged in prior commitments. -- if we could excuse them for a few minutes. do we have an announcement?
>> yes, please turn off all cell phones. if you wish to speak during public comment, please fill out a speaker card and have them right to myself. if you wish to submit documents, please provide a copy to the clerk. items discussed today will appear on the board of supervisors agenda on july 19, 2011, unless otherwise stated. supervisor chu: thank you very much. call item one please. >> would you like item one and two? >> item 1. >> item 1, resolution approving the amendment 1 retroactive to april 14, 2011, to airport spa an amendment to the we'll look to technology stores and accessories with ilj san francisco, llc, and the city and county of sand and cisco, acting by and through its airport commission. -- city and county of san
francisco. >> good morning, members of the committee. the budget analyst report deals with items one and two. do you want me to address them together? supervisor chu: we have not yet called item two. why don't we call item two? >> item two, resolution approving the amendment 1 retroactive to april 14, 2011, to domestic terminal food and beverage with baysubway airport with luna azul corp., with guava and java inc., and with burger joint, inc., and the city and county of san francisco, acting by and through its airport commission. supervisor chu: thank you very much. >> thank you. the airport is seeking your approval of two items, both
relating to the temporary closure of boarding area e and mitigating the financial effects of this closure on six tenants around the boarding area. the two resolutions before you for consideration would retroactively amend the six existing leases with ilj san francisco doing business as airport wireless, airport spa sf, luna azuul do business as jalapeno grill, guava and java, and subway. we are seeking the ability to amend these leases to partially waive the minimum annual guarantee and other concessions during the renovation of the boarding area. work is expected to be completed in august 2012. the renovation will provide the airport was upgraded facilities and give us an opportunity to seismically retrofitted some of the existing infrastructure and will also allow us to increase
the concessions space throughout the boarding area. unfortunately, most of the pier is closed while we do this. obviously, it results in a pretty significant decrease in passenger traffic. with the exception of mission bar and grill, which cannot continue to operate at all, as their location is behind a construction wall. the remaining leases will continue to operate but with far less passenger traffic. airport revenue developments that as well as the budget analyst estimate that the partial minimum guarantees and fees represents a loss in revenues to the airport of approximately $470,000. airports that does believe, however, that it is likely that this amount, this revenue will be recouped at other locations as we shift passenger traffic throughout the airport. the budget analyst recommends approval of the amendment, and i
would be happy to answer any questions you might have. supervisor chu: thank you very much. mr. rose. >> as indicated, on page 6 of our report, the airport estimates for boeing about $469,540 in annual revenues if you approve these resolutions. however, as you know, this revenue reduction would not directly impact the airport budget because of the airport's break-even policy. we recommend that you approve both of these resolutions. supervisor chu: thank you. a question -- with regards to the break-even policy, can you explain that a bid and whether it sounds like the rate setting happens at a particular point in time. did they anticipate there would be these renovations, and were
they able to take into account the loss of revenue? >> yes. as you know, the airport budget is set at the beginning of the year with anticipated revenue coming into the airport for the year. any shortfall in the revenue would be made up by increasing rates and charges the following year. because the airport was aware that the work would be done, the loss of the $470,000 would have been contemplated in the budget and would be reflected in the rates and charges of the airport. supervisor chu: thank you. what we open up for public comment? are there any members of the public who wish to speak on items one and it we will? seeing none, public comment is closed. colleagues, can we send these items forward to the full board with recommendation? we will do that without objection. item three, please. >> item 3, resolution approving
a contract between the department of public health and the san francisco aids foundation for rent subsidies services for people living with hiv/aids. supervisor chu: thank you very much. we have some representatives from the department of public health. >> good morning, members of the committee. i am deputy director of housing and urban health, which is a section of the health department. we brought to you today a five- year agreement between dph and the aids foundation for rent subsidies and subsidies related to its subsidies for people living with hiv/aids. this is a five-year contract, therefore, we are going over the $10 million mark, and i leave this item to you. i am year to answer any questions that you have. supervisor chu: thank you. why don't we go to the budget analyst report? >> madame chair, members of the
committee, the existing contractor is the only contractor that responded to the rfp. the authorized amount for this proposed five-year contract -- the existing contract is two years. the average annual amount is $3.9 million, and that is the same amount -- same average annual amount for the new proposed five-year agreement. of the total $19,685,000.2009- 2010 contract, the amount budgeted each year will be $17.5 million. there was also a contingency amount of approximately $2.1 million, but that cannot be expanded unless there is an amendment or modification to the agreement, which must be approved by the board of supervisors -- of the totaled
$19,685,000 2009-2010 contract. supervisor chu: what would we expect in terms of a contingency being tapped into? >> typically what we use the contingency for is if we reallocate funds or get a grant funding. in the past it is usually relatively small amounts. we had a contract that got funding from the mental health services act, so we used the contingency that was in the contract to add additional funds. most likely, the only reason the contingency would be used on this contract is if there was some reason why they were reallocating general funds from one section of the housing and urban health program and giving it to this provider. typically, that would be if one
provider was under delivering units of services, and this provider could deliver more units. supervisor chu: thank you. if there are no further questions, why don't we open this item up for public comment? are there any members of the public who wish to speak on item 3? seeing none, public comment is closed. we have a motion to send the item for with recommendation and a second, and we will do that without objection. i believe that we have a representative from the mta for item four, but they are on their way, so why don't we call item 5? >> item 5, resolution authorizing the mayor's office of housing to expand so many stabilization fund dollars in the amount of $325,000 to provide housing and job readiness services, low-income residents, and workers in the south of market neighborhood. supervisor chu: thank you very
much. supervisor kim, would you like to say in the opening comments? >> i think the presentation from our staff would be appropriate. supervisor chu: ok. i believe we have claudine from moh. >> good evening. i am with the mayor's office of housing. last year, under resolution 381- 10, the full board approved an agreement between the mayor's office of housing, the community advisory committee, and the developers of 333 harrison to deliver a particular community benefits, including the construction of 49 on-site affordable rental units for households earning more than 30% of median income and supporting local hire for construction and non-construction jobs.
now, the community advisory committee is recommending to commit funds to support housing and work for services to prepare low-income soma residents and workers for the housing and employment opportunities that this would generate. a copy of the recommendations have been filed with the clerk, and there are basically two. the first is a recommendation to expend $250,000 for a grant that will go to the veterans equity center to provide case management services to prepare residents and workers for the housing opportunities that will arise out of this project as well as other affordable housing opportunities throughout the city. the second recommendation is for $75,000 to go to -- actually, the asian neighborhood design through an amendment with the contract that exists already with the office of economic and workforce development.
any questions? supervisor chu: i think that there will be some questions, but why don't we go to the budget analyst report first? >> madame chair and members of the committee, we have a table, table 1, which shows that the amount in this fund or the revenues that have been received to date since the inception -- $9,191,000 -- $1,991,923. expenditures at it from the fund from the inception to date is $4,067,518, so there is a balance in the fund of approximately $5.1 million. if you approve the $325,000, that would leave a remaining balance of nearly $4,800,000.